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Carrier Global Corporation (CARR), based in Palm Beach Gardens, Florida, is a leading provider of HVAC, refrigeration, fire, and security solutions valued at a market cap of $62.6 billion. Serving residential, commercial, industrial, and transportation sectors, Carrier is known for its innovative, energy-efficient products that enhance building efficiency and sustainability globally.
Companies worth $10 billion or more are considered "large-cap" stocks, and Carrier Global fits right into that category, reflecting its substantial size, stability, and influence in the building products and equipment industry. Carrier Global's market leadership is supported by top brands like Carrier and Toshiba, which drive innovation and customer loyalty. Strategic acquisitions, such as Viessmann's climate solutions business, enhance its product offerings and position the company for growth in sustainable energy solutions.
Shares of CARR are currently trading 4.9% below their 52-week high of $73.06, which they hit on Sept. 3. The stock has gained 11.2% over the past three months, significantly outpacing the S&P 500 Index’s ($SPX) 1% gain during the same time frame.
In the long term, CARR is up 20.9% on a YTD basis, and the shares have returned an impressive 23.2% over the past 52 weeks. In comparison, the SPX has rallied 13.4% in 2024 and rallied 21.1% over the past year.
To confirm the bullish price trend, CARR has been trading above its 50-day moving average since mid-August and over its 200-day moving average since late April.
CARR's solid price momentum stems from recent price hikes, strong demand for its HVAC products and aftermarket services, as well as increased sales of air conditioners and purifiers due to extreme heatwaves and rising pollution. The company's success is further bolstered by the rapid adoption of energy-efficient heat pumps, driven by stricter energy regulations for buildings.
On Sept. 6, Carrier Global shares surged more than 2% after Wolfe Research upgraded the stock to “Peer Perform” from “Underperform.”
However, CARR shares closed down more than 1% on Jul. 25 after reporting mixed Q2 earning results. Its adjusted EPS of $0.87 topped Wall Street expectations of $0.85, but the company’s revenue was $6.69 billion, falling short of Wall Street forecasts of $7.05 billion.
In the fiercely competitive building products and equipment industry, top rival Johnson Controls International PLC (JCI) has underperformed CARR, gaining 17.7% on a YTD basis and 17.8% over the past 52 weeks.
Given its outperformance relative to SPX and rivals in the market, analysts are cautiously optimistic about CARR's prospects. The stock has a consensus rating of "Moderate Buy" from 18 analysts in coverage. The mean price target of $71.20 reflects a 2.5% premium over the prevailing market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
